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Furthermore, employees reported receiving no prior notice about these closures, indicating a possible shift in the company's strategic priorities. Starbucks announced it would assist affected workers with transfers but also revealed plans to eliminate 900 non-retail corporate jobs as part of a sprawling billion-dollar restructuring plan.
Strategic Restructuring and Financial Goals
The closures are part of a broader corporate restructuring. Starbucks plans to spend around $1 billion on this initiative, which includes covering employee separation benefits, lease exit costs, and closing expenses. This move appears aimed at consolidating profitability by trimming underperforming stores, especially small-format locations that mostly operate as drive-thrus or pickup-only outlets.